Air travel goes into a tailspin over price

New Delhi, May 9: Higher airfares coupled with increased fuel surcharges have pulled down the domestic air passenger growth significantly to 11.2 per cent in the first quarter of the current year, against 29 per cent achieved in calendar year 2007. In March alone, the domestic fares and fuel surcharges surged by 10 per cent, a recent report by the Centre for Asia Pacific Aviation said.

The report, covering emerging markets of Asia sounded a warning for the aviation industry saying the current year would achieve a lower growth.

"Whether it is a spill-over from the US or the impact of rising costs of travel, or a combination of the two, it is clear Asia’s big emerging air travel markets will have a soft year," the report said.

However, the report is in contrast to a recent American Express study, which pointed out the average domestic airfares in the country were down by 9 per cent in the first quarter of the on-going calender year against the corresponding quarter of 2007. (PTI)

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BHEL to take-over BHPV today

By Our Correspondent

Visakhapatnam, May 9: Bharat Heavy Plates and Vessels Ltd (BHPV), a central public sector undertaking which was refered to Board for Industrial and Financial Reconstruction, will be formally taken over by BHEL here on Saturday.

Chief Minister Y.S. Rajasekhar Reddy, Union finance minister P. Chida-mbaram and Union minister for heavy industries and PSUs Santosh Mohan Dev would witness the event.

BHEL will also sign an MoU with APGenco for nation’s largest 125 m Integrated Coal Gasification Combined Cycle Power Plant in BHPV premises.

The state government has also extended various concessions for the revival of the sick company, which include gifting 386.73 acres to BHPV and waiving registration and stamp duties.

As part of the revival package, BHEL will invest Rs 275 crores to upgrade BHPV’s manufacturing fa-cilities, capital expenditure and working capital as required.